Zomato reported a significant 75% increase in revenue for the December quarter, surpassing expectations. This boost was largely due to the company’s Hyperpure operations, which saw a 169% increase in revenue to Rs 421 crore, partially fueled by supplying goods to sellers on Blinkit’s marketplace. Despite the rise in revenue, higher expenses for deliveries, advertising, and stock-in-trade resulted in a wider consolidated net loss of Rs 347 crore, compared to the previous year’s loss of Rs 67 crore.
Zomato’s CEO, Deepinder Goyal, stated that the company will prioritize growth over profitability in the Hyperpure segment and believes that it is well positioned to monetize the opportunity to synergize with Blinkit’s supply chain and sourcing strengths. Goyal’s tweet hinting at profitability caused Zomato’s shares to soar over 9%, despite a 60% drop since its listing in July 2021.
In an earnings statement released Thursday evening, Zomato acknowledged the growth potential of its Hyperpure segment and expressed its intention to focus on expanding the business. The Gurugram-based company recognized the opportunity to leverage its partnership with Blinkit and maximize the potential of their combined strengths. This strategic move is likely to have a significant impact on the company’s overall growth and success in the future.
The positive earnings announcement caused Zomato’s stock to end nearly unchanged at Rs 54.60 per share on the NSE. Despite the recent dip in the company’s stock price, the market remains optimistic about Zomato’s potential for growth and profitability. The company’s ability to overcome the challenges posed by the pandemic and continue to grow despite rising expenses is a testament to its resilience and strong leadership.
In conclusion, Zomato’s 75% revenue boost for the December quarter and the growth of its Hyperpure operations are positive indicators for the company’s future success. With a focus on expanding the Hyperpure segment and maximizing the potential of its partnership with Blinkit, Zomato is well-positioned to drive continued growth and profitability in the coming years.
